Jakarta (ANTARA News) - HSBC has revised up its prediction of the countrys economic growth this year from 4.7 percent to 5 percent despite slowdown in the first three months of the year.

"HSBC is optimistic about the countrys economic growth this year. The key factor is increase in inflow of foreign investment resulting in a strong growth in to successive quarters," HSBC economist for ASEAN, Su Sian Lim , said here on Thursday.

Su Sian Lim was speaking at HSBC Economic Outlook 2016 titled "ASEAN Economic Community: Indonesia to Punch Above Its Weight".

He said the slowdown in 2015 and early 2016 was caused by commodity price fall and weak exports on slump in the global market.

"However, Indonesian economy has shown signs of recovery. For that purpose it is necessary to continue to the push for reform to attract more investment, improve productivity and encourage new sources of growth," he said.

In addition, he called for more liberal regulations, accelerate infrastructure development and boost development of small and medium enterprises.

Indonesia ranks among the toughest ASEAN countries together with Myanmar, Laos, Vietnam, and the Philippines in facing the global crisis, he said.

"They have proved they are able to weather the difficult period as obvious from their Gross Domestic Product (GDP) growth averaging more than 4.3 percent," he said.

He said the Indonesian government has been effective in its efforts to boost infrastructure development by allowing projects to be financed and auctioned ahead of the fiscal year.

"However, the government should not rely only for growth on infrastructure spending especially as the public works ministry is a bit slow in implementation, although the determination shown by the government in reaching the target in infrastructure development has reached concrete result," he said.(*)

Editor: Heru Purwanto
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